Startups

Reasons your startup should rent a CFO instead of hiring one

  • 3 min Read
  • May 14, 2015

Author

Escalon

Table of Contents

Even though you are kind of a big deal in your own startup/industry, you can’t know what you don’t know about CFO-related work. Although accountants can help you build a solid financial foundation, working with a CFO instead can be game changer for a small business or startup. In this shared economy, it is easier than ever to find an on-demand CFO for your particular stage of growth.


Having a financial officer on a startup’s staff elevates the company to a whole new level. CFOs can be instrumental in planning, forecasting, and making strategic business decisions. Perhaps more importantly, the investment structuring, equity / option allocation, spending, and human resource decisions you make in the early stages of your business can make or break you. CFOs take a macro view – a perspective few CEOs have time or knowledge for.


While these are all fantastic reasons to employ a CFO, conventional hires can be expensive. According to Glassdoor.com, the average CFO salary in the U.S. is over $156,000. For small businesses and startups, CFOs bring huge value but it just may not be necessary to have a full-time CFO.


This is where the possibility of a virtual CFO comes into play. If you are starting small, you will likely only need a few hours a week, making the idea of an on-demand CFO within reach. Further, due to the nature of their work, an outsourced or interim CFO will have vast executive-level skills and industry experience, providing you with immediate value. Many CFOs also specialize in the unique needs of startups, making them instrumental to your team and culture.


In addition, CFOs are instrumental to setting up effective financial systems and processes. This includes services that assist in understanding your full financial profile so you can be strategic about decisions involving precious funds.


Another key area is setting up the appropriate infrastructure for financial metrics. The metrics and services below provide other management team members with the information they need to make the best decisions for the company moving forward.


A CFO brings foresight and strategic planning, valuable small companies and startups who don’t have the time to look ahead. While day to day activities help actively drive your company, the overall financial strategy of a company is what drives it more successfully into the future. Unlike an accountant, strategic planning is exactly what a CFO can focus on. This will frequently include identifying opportunities, and creating value in a business’s financial operations. An experienced CFO knows what things should cost and can favorably negotiate everything from benefits packages to leases.


Another huge benefit of a virtual CFO is their ability to help secure capital. This can be a vital bloodline to many startups, yet is a process most principles and teams can’t navigate without professional financial help.


As you can see, a CFO gives you the best of both worlds: – they lower labor costs while providing expert strategic financial direction. With your time at a premium, you don’t have the luxury of experimenting with different potential CFOs, so it makes more sense to rely on outsourced service providers that have spent the time to develop relationships with proven CFO’s. If you are ready to consider an interim or part-time CFO, Escalon can show you what the ROI looks like for your company.

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

Contact Us Today!

Tap into the latest insights from experts in your industry

Accounting & Finance

Common Accounting Mistakes That Cost Medium-Sized Businesses Millions 

Accurate accounting is the bedrock of any successful business operation. Yet, medium-sized businesses—those that have grown beyond the small-business stage...

Read More
Taxes

1099 vs. W-2: How to Ensure Compliance and Reduce Risk 

Distinguishing between independent contractors (1099) and employees (W-2) is a pivotal compliance matter for U.S. businesses. Misclassification can result in...

Read More
Accounting & Finance

Capital Raising in Spring: How to Position Your Startup for Investor Interest

Spring symbolizes renewal, making it an apt metaphor for startups aiming to secure fresh capital to fuel their next growth...

Read More
uncategorized

Spring Clean Your Payroll: Essential HR Best Practices for Scaling Startups

Payroll is more than just issuing paychecks—it’s a complex, high-stakes process that can significantly impact employee satisfaction, legal compliance, and...

Read More
Accounting & Finance

How to Leverage Q2 Financial Data to Drive Startup Growth in the Second Half of the Year

For startups seeking sustainable growth, every quarter provides a treasure trove of data—but Q2 data can be particularly revealing. By...

Read More
Accounting & Finance

Q2 Business Planning: Adjusting Your Financial Strategy for the Rest of the Year

By the time Q2 rolls around, many startups have a clearer picture of their performance and market positioning compared to...

Read More
People Management & HR

5 Key HR Challenges to Address Before Summer to Keep Your Team Engaged

For many startups, the summer months can be a dual-edged sword. On one hand, warmer weather and looming vacations can...

Read More
Taxes

How to Maximize Your Tax Deductions: Essential Tips for Startups in Q2

Tax season often triggers stress and complexity—especially for startups laser-focused on building products, acquiring customers, and scaling operations. Yet savvy...

Read More
Startups

Mid-Year Financial Checkup: How to Assess and Adjust Your Startup’s Budget 

The halfway mark of any given year is more than just a date on the calendar; it’s a valuable checkpoint...

Read More